A Business Plan: What Is It Really For?

Turning Your Business Case into a Winning Host Agreement

In our day-to-day work as consultants, we receive countless requests for support, that is, for the provision of services, all of which fundamentally require a well-structured and thoroughly developed business plan.

Clearly, my objective is not to explain what a Business Plan is. For that, we already have an excellent reference in How to Create a Business Plan for Your Mobile Brand (MVNO).

Our colleague Magdalena Bay also recently published a highly valuable article, How to Build a Defensible MVNO Business Case. I have no doubt that the growth expectations in the MVNO market are driving multiple similar requests our way. This, in turn, expands opportunities for collaboration among consultants and strengthens the overall ecosystem of expertise in the field.

As we know, this Business Plan must be presented to different stakeholders. It will be required by the regulator in order to obtain the corresponding license or authorization, as they need to understand the purpose and scope of the license being requested. It will also be essential for potential investors, who will certainly not commit capital based on an idea alone, they need to clearly see the viability, sustainability, and growth potential of the business.

However, the purpose of this blog post is to highlight one specific and critical use of the Business Plan: convincing the host operator to enter into negotiations that can ultimately lead to a successful agreement.

Recent examples of request we got include a new MVNO from Northern Europe seeking to establish operations in Spain and requesting assistance with the management of the necessary regulatory authorizations; another operator from Italy with the same objective; operators from other regions, including a recent inquiry from an African country to get established in its country, needing some support to build such Business Plan and negotiate with Regulator to get a license and of course the Host to get access; and, on the other hand, a global operator aiming to secure agreements with different MNOs across multiple countries worldwide.

All these requests share a common denominator: the need to present appropriate and well-prepared documentation to different stakeholders. The purpose of this article is not to reiterate what is already well described on MVNO Index, but rather to highlight the importance of the business plan in what may become one of the most critical negotiations of all, the relationship with the host operator, that is pretty well introduced in MVNOs / Mobile Brands and Wholesale Agreements.

Inside the MNO’s Mind: What They Really Look for in Your Business Case

For a MVNO, MNOs/MVNEs mainly want to be sure thar our Project is credible, non‑cannibalising, and operationally easy to work with. In practice, to even open the door they need you to bring tangible volume, solid margins, and limited risk. From our experience, if we present a solid BC with following aspects we will gain credibility from the very beginning.

Solid business case and volume

If we want to convince the Wholesale team of the operator, the first step is undoubtedly to demonstrate the value for them. We must clearly articulate their upside.

This requires presenting a robust and credible subscriber and traffic forecast, including projected lines, ARPU, and expected consumption (GB, minutes, SMS) by segment and by country. From their perspective, they need clear visibility on when we are likely to reach meaningful scale and, most importantly, how much wholesale revenue we will generate.

They must be able to internally defend the opportunity in front of their executive committee or board. If our Business Plan does not provide them with the necessary figures, timing, and financial impact to build that internal case, negotiations will not move forward.

To make this even more credible, it will be essential to demonstrate a clear willingness to accept minimum revenue or commitment levels (MRG/MRC), as well as reasonable penalties in case of shortfall.

From the host operator’s perspective, this type of commitment significantly reduces risk and signals that we are confident in our projections. It shows that we are prepared to share responsibility for performance and align our interests with theirs, a key factor in building trust and accelerating negotiations.

Protection of their core business

It will not be easy to convince someone of our project if they perceive that we might be encroaching on their existing customer base. That’s why it is critical to:

• Provide a clear positioning that defines our target audience, highlights the specific niche (e.g., frequent business travelers), and emphasizes how we add value rather than undercutting their mainstream corporate offerings.
• Avoid engaging in a direct price war against their flagship B2B customers or mass-market retail segments.

It is also quite common for host operators to impose:

• Possible restrictions on working with multiple host networks within the same country.

This approach reassures the host operator that our strategy is complementary, not competitive, and helps build trust for successful negotiations.

Financial and operational robustness

All of the above is crucial, but without a doubt, the most important aspect in any business is demonstrating the solidity of our project. To achieve this, we must convince the host operator both financially and operationally by showing:

• Financial robustness: proof that we can pay wholesale bills, handle roaming peaks, and sustain operations until reaching breakeven.
• Operational readiness: proper systems in place for billing, CRM, customer support, fraud management, and credit control in the areas we will fully manage.
• Realistic launch plan and timeline: they usually distrust partners who never actually go live, so demonstrating a credible rollout plan is essential. Our experience in current markets is a significant advantage in this regard.

This combination of financial credibility and operational preparedness is what builds trust and sets the foundation for successful negotiations with the host operator.

Quality, SLAs and brand protection

Equally important is understanding the critical role of quality. Even though it is primarily our brand at stake, the host operator will also want to protect its own brand image. Therefore, in addition to requesting service-level commitments from the host, we must also commit ourselves to the following:

• Acceptance of strict SLAs and KPIs: covering network availability, latency, attach success, roaming quality, and trouble ticket handling.
• Clear joint processes for incident management and escalations: ensuring seamless NOC-to-NOC coordination and 24/7 support.
• Assurance that the customer experience will not harm the host’s brand.

Demonstrating this shared commitment to quality reassures the host operator and reinforces trust, which is essential for a strong and lasting partnership.

Regulatory and security compliance

We must not forget that a strong Business Case also needs to inspire confidence in our analysis. For this reason, it is essential to address regulatory and compliance aspects, which, from an economic perspective, translate into practical solutions for full adherence to local regulations under the host’s umbrella — including emergency calls, lawful interception, number portability, data retention, and privacy. This is a critical point, as the greater the support we require from the MNO, the more oversight they will naturally exercise.

Similarly, risk analysis carries an economic dimension, which implies a serious approach to security and fraud management, including roaming fraud, SIM misuse, and credit risk mitigation.

Emphasizing these elements demonstrates both responsibility and operational preparedness, reinforcing trust with the host operator and facilitating smoother, more productive negotiations.

Strategic fit and partnership attitude

To close, we need to captivate the host operator with a compelling story that clearly demonstrates how we will generate incremental, high-value roaming and traffic that they are not capturing today.

At the same time, we must frame this as a long-term partnership, supported by a structured expansion roadmap that leverages either their existing network footprint while keeping integration overhead to a minimum.

This combination of clear value creation and strategic, low-risk growth is what convinces the host that partnering with us is both profitable and sustainable over the long term.

Conclusions

Just as we rely on a doctor to treat our illnesses or trust the best developers to build our applications, when it comes to preparing the most important document of any company, its Business Plan, we should carefully consider the value of working with specialists.

My company is here to support MVNOs directly, or through our collaborations with leading market experts, ensuring that their Business Plans are robust, credible, and designed to succeed in the most demanding negotiations.